Putnam Emerging Markets Equity Fund The fund's portfolio 5/31/21 (Unaudited)
COMMON STOCKS (98.8%)(a) Shares Value
Airlines (0.9%) Copa Holdings SA Class A (Panama)(NON) 70,700 $5,815,782
5,815,782
Banks (5.7%) HDFC Bank, Ltd. (India)(NON) 889,339 18,568,792 Sberbank of Russia PJSC ADR (Russia) 548,845 9,261,759 TCS Group Holding PLC GDR 144A (Cyprus) 107,200 8,040,000
35,870,551
Capital markets (2.4%) B3 SA - Brasil Bolsa Balcao (Brazil) 3,151,700 10,607,061 Hong Kong Exchanges and Clearing, Ltd. (Hong Kong) 73,200 4,582,015
15,189,076
Chemicals (2.5%) Asian Paints, Ltd. (India) 184,575 7,592,754 LG Chem, Ltd. (South Korea) 11,537 8,471,983
16,064,737
Entertainment (1.7%) Sea, Ltd. ADR (Thailand)(NON) 42,300 10,712,052
10,712,052
Food and staples retail (3.0%) Dino Polska SA (Poland)(NON) 84,264 6,522,925 Wal-Mart de Mexico SAB de CV (Mexico) 3,834,400 12,620,909
19,143,834
Health-care equipment and supplies (1.4%) Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class A (China) 120,200 9,120,222
9,120,222
Health-care providers and services (3.0%) Apollo Hospitals Enterprise, Ltd. (India)(NON) 289,662 12,728,054 Universal Vision Biotechnology Co., Ltd. (Taiwan) 540,000 5,917,702 18,645,756
Hotels, restaurants, and leisure (2.7%) Jubilant Foodworks, Ltd. (India)(NON) 127,363 5,470,363 Yum China Holdings, Inc. (China) 177,500 11,812,902
17,283,265
Household durables (—%) HC Brillant Services GmbH (acquired 8/2/13, cost $8) (Private) (Germany)(NON)(F)(RES) 12 11
11
Household products (1.7%) Hindustan Unilever, Ltd. (India) 325,285 10,507,299
10,507,299
Insurance (2.5%) AIA Group, Ltd. (Hong Kong) 1,232,800 15,757,678
15,757,678
Interactive media and services (14.8%) Baidu, Inc. ADR (China)(NON) 40,100 7,870,427 Kakao Corp. (South Korea) 110,447 12,180,562 NAVER Corp. (South Korea) 31,054 10,093,316 Tencent Holdings, Ltd. (China)(NON) 680,100 54,243,954 Yandex NV Class A (Russia)(NON)(S) 133,653 9,026,924
93,415,183
Internet and direct marketing retail (13.4%) Alibaba Group Holding, Ltd. (China)(NON) 1,570,168 42,689,050 JD.com, Inc. ADR (China)(NON)(S) 192,255 14,215,335 Meituan Dianping Class B (China)(NON) 345,200 13,076,937 MercadoLibre, Inc. (Argentina)(NON) 7,515 10,210,405 Prosus NV (China) 40,700 4,214,220
84,405,947
IT Services (3.0%) StoneCo., Ltd. Class A (Brazil)(NON) 48,400 3,192,948 Tata Consultancy Services, Ltd. (India) 364,128 15,901,023
19,093,971
Life sciences tools and services (1.6%) WuXi AppTec Co., Ltd. Class H (China) 486,144 10,410,794
10,410,794
Machinery (6.7%) Airtac International Group (China) 250,000 8,994,070 Sany Heavy Industry Co., Ltd. Class A (China) 1,662,904 7,912,620 Shenzhen Inovance Technology Co., Ltd. Class A (China) 709,378 10,975,484 Techtronic Industries Co., Ltd. (TTI) (Hong Kong) 769,500 14,208,320
42,090,494
Multiline retail (0.8%) Poya International Co., Ltd. (Taiwan) 274,260 5,309,119
5,309,119
Oil, gas, and consumable fuels (3.4%) Reliance Industries, Ltd. (India) 714,136 21,228,153
21,228,153
Professional services (1.6%) Centre Testing International Group Co., Ltd. Class A (China) 1,903,256 10,036,964
10,036,964
Semiconductors and semiconductor equipment (16.8%) MediaTek, Inc. (Taiwan) 382,000 13,701,628 Novatek Microelectronics Corp. (Taiwan) 452,000 8,700,925 Parade Technologies, Ltd. (Taiwan) 141,000 7,776,716 SK Hynix, Inc. (South Korea) 169,922 19,349,138 Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) 2,547,889 54,832,816 Xinyi Solar Holdings, Ltd. (China) 842,000 1,510,217
105,871,440
Software (1.9%) Totvs SA (Brazil) 1,804,795 11,936,850
11,936,850
Technology hardware, storage, and peripherals (4.6%) Samsung Electronics Co., Ltd. (South Korea) 401,903 29,008,510
29,008,510
Textiles, apparel, and luxury goods (2.7%) Li Ning Co., Ltd. (China) 1,788,000 16,783,594
16,783,594
Total common stocks (cost $506,875,596) $623,701,282 INVESTMENT COMPANIES (0.7%)(a) Shares Value iShares Core MSCI Emerging Markets ETF 70,200 $4,678,830
Total investment companies (cost $4,646,847) $4,678,830
SHORT-TERM INVESTMENTS (4.1%)(a) Shares Value Putnam Cash Collateral Pool, LLC 0.10%(AFF) 20,619,192 $20,619,192 Putnam Short Term Investment Fund Class P 0.08%(AFF) 4,980,258 4,980,258
Total short-term investments (cost $25,599,450) $25,599,450
TOTAL INVESTMENTS
Total investments (cost $537,121,893) $653,979,562
Key to holding's abbreviations ADR American Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank ETF Exchange Traded Fund GDR Global Depository Receipts: represents ownership of foreign securities on deposit with a custodian bank PJSC Public Joint Stock Company Notes to the fund's portfolio Unless noted otherwise, the notes to the fund's portfolio are for the close of the fund's reporting period, which ran from September 1, 2020 through May 31, 2021 (the reporting period). Within the following notes to the portfolio, references to "Putnam Management" represent Putnam Investment Management, LLC, the fund's manager, an indirect wholly-owned subsidiary of Putnam Investments, LLC, references to "ASC 820" represent Accounting Standards Codification 820 Fair Value Measurements and Disclosures and references to "OTC", if any, represent over-the-counter. (a) Percentages indicated are based on net assets of $631,047,222. (NON) This security is non-income-producing. (RES) This security is restricted with regard to public resale. The total fair value of this security and any other restricted securities (excluding 144A securities), if any, held at the close of the reporting period was $11, or less than 0.1% of net assets. (AFF) Affiliated company. For investments in Putnam Cash Collateral Pool, LLC and Putnam Short Term Investment Fund, the rate quoted in the security description is the annualized 7-day yield of the fund at the close of the reporting period. Transactions during the period with any company which is under common ownership or control were as follows: Shares outstanding Fair value and fair as of Purchase Sale Investment value as of Name of affiliate 8/31/20 cost proceeds income 5/31/21 Short-term investments Putnam Cash Collateral Pool, LLC*# $4,582,531 $235,174,390 $219,137,729 $14,188 $20,619,192 Putnam Short Term Investment Fund** 2,481,781 180,775,675 178,277,198 3,812 4,980,258
Total Short-term investments $7,064,312 $415,950,065 $397,414,927 $18,000 $25,599,450 * The fund may lend securities, through its agent, to qualified borrowers in order to earn additional income. The loans are collateralized by cash in an amount at least equal to the fair value of the securities loaned. The fair value of securities loaned is determined daily and any additional required collateral is allocated to the fund on the next business day. The remaining maturities of the securities lending transactions are considered overnight and continuous. The risk of borrower default will be borne by the fund’s agent; the fund will bear the risk of loss with respect to the investment of the cash collateral. The fund receives cash collateral, which is invested in Putnam Cash Collateral Pool, LLC, a limited liability company managed by an affiliate of Putnam Management. Investments in Putnam Cash Collateral Pool, LLC are valued at its closing net asset value each business day. There are no management fees charged to Putnam Cash Collateral Pool, LLC and there were no realized or unrealized gains or losses during the period. # At the close of the reporting period, the fund received cash collateral of $20,619,192 for securities loaned. The rate quoted in the security description is the annualized 7-day yield at the close of the reporting period. At the close of the reporting period, the value of securities loaned amounted to $20,356,338. ** Management fees charged to Putnam Short Term Investment Fund have been waived by Putnam Management. There were no realized or unrealized gains or losses during the period.
(F) This security is valued by Putnam Management at fair value following procedures approved by the Trustees. Securities are classified as Level 3 for ASC 820 based on the securities' valuation inputs. (S) This security is on loan, in part or in entirety, at the close of the reporting period. 144A after the name of an issuer represents securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
DIVERSIFICATION BY COUNTRY Distribution of investments by country of risk at the close of the reporting period, excluding collateral received, if any (as a percentage of Portfolio Value): China 35.3% Taiwan 15.2 India 14.5 South Korea 12.5 Hong Kong 5.5 Brazil 4.1 Russia 2.9 Mexico 2.0 Thailand 1.7 Argentina 1.6 United States 1.5 Cyprus 1.3 Poland 1.0 Panama 0.9 Germany <0.1
Total 100.0%
Security valuation: Portfolio securities and other investments are valued using policies and procedures adopted by the Board of Trustees. The Trustees have formed a Pricing Committee to oversee the implementation of these procedures and have delegated responsibility for valuing the fund’s assets in accordance with these procedures to Putnam Management. Putnam Management has established an internal Valuation Committee that is responsible for making fair value determinations, evaluating the effectiveness of the pricing policies of the fund and reporting to the Pricing Committee. Investments for which market quotations are readily available are valued at the last reported sales price on their principal exchange, or official closing price for certain markets, and are classified as Level 1 securities under ASC 820. If no sales are reported, as in the case of some securities that are traded OTC, a security is valued at its last reported bid price and is generally categorized as a Level 2 security. Investments in open-end investment companies (excluding exchange-traded funds), if any, which can be classified as Level 1 or Level 2 securities, are valued based on their net asset value. The net asset value of such investment companies equals the total value of their assets less their liabilities and divided by the number of their outstanding shares. Many securities markets and exchanges outside the U.S. close prior to the scheduled close of the New York Stock Exchange and therefore the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the scheduled close of the New York Stock Exchange. Accordingly, on certain days, the fund will fair value certain foreign equity securities taking into account multiple factors including movements in the U.S. securities markets, currency valuations and comparisons to the valuation of American Depository Receipts, exchange- traded funds and futures contracts. The foreign equity securities, which would generally be classified as Level 1 securities, will be transferred to Level 2 of the fair value hierarchy when they are valued at fair value. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the fund to a significant extent. Securities quoted in foreign currencies, if any, are translated into U.S. dollars at the current exchange rate. Short-term securities with remaining maturities of 60 days or less are valued using an independent pricing service approved by the Trustees, and are classified as Level 2 securities. To the extent a pricing service or dealer is unable to value a security or provides a valuation that Putnam Management does not believe accurately reflects the security's fair value, the security will be valued at fair value by Putnam Management in accordance with policies and procedures approved by the Trustees. Certain investments, including certain restricted and illiquid securities and derivatives, are also valued at fair value following procedures approved by the Trustees. These valuations consider such factors as significant market or specific security events such as interest rate or credit quality changes, various relationships with other securities, discount rates, U.S. Treasury, U.S. swap and credit yields, index levels, convexity exposures, recovery rates, sales and other multiples and resale restrictions. These securities are classified as Level 2 or as Level 3 depending on the priority of the significant inputs. To assess the continuing appropriateness of fair valuations, the Valuation Committee reviews and affirms the reasonableness of such valuations on a regular basis after considering all relevant information that is reasonably available. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security in a current sale and does not reflect an actual market price, which may be different by a material amount.
ASC 820 establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund's investments. The three levels are defined as follows: Level 1: Valuations based on quoted prices for identical securities in active markets. Level 2: Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3: Valuations based on inputs that are unobservable and significant to the fair value measurement. The following is a summary of the inputs used to value the fund's net assets as of the close of the reporting period:
Valuation inputs Investments in securities: Level 1 Level 2 Level 3 Common stocks*: Communication services $104,127,235 $— $— Consumer discretionary 123,781,925 — 11 Consumer staples 29,651,133 — — Energy 21,228,153 — — Financials 66,817,305 — — Health care 38,176,772 — — Industrials 57,943,240 — — Information technology 165,910,771 — — Materials 16,064,737 — —
Total common stocks 623,701,271 — 11 Investment companies 4,678,830 — — Short-term investments — 25,599,450 —
Totals by level $628,380,101 $25,599,450 $11 * Common stock classifications are presented at the sector level, which may differ from the fund's portfolio presentation.
At the start and close of the reporting period, Level 3 investments in securities represented less than 1% of the fund's net assets and were not considered a significant portion of the fund's portfolio.
For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com